GMG Looks To Expand Radio Interests With Capital Bid

Guardian Media Group is reportedly planning to expand its radio interests with a bid for Capital Radio.

The move follows the breakdown of the group’s negotiations to buy out its joint venture partner, BC Partners, in the Autotrader publishing business.

It is understood that the media group, which publishes the Guardian and the Observer, had allocated around £500 million to take control of Autotrader. However, discussions with its joint venture partner have broken down and reports suggest that GMG now intends to focus on expanding its radio business.

GMG, which owns Real Radio stations in Scotland, South Wales and Yorkshire, acquired Jazz FM last year for more than £44 million (see Jazz FM Agrees To £44.5m Takeover By GMG).

The company is just one of a number of radio groups hoping to take advantage of the relaxation of the media ownership regulations by the Communications Bill, which is due to become law later this year (see Government Confirms Relaxation Of Radio Ownership Rules).

However, any consolidation within the sector will still face the scrutiny of the competition laws, which recently prevented GWR from buying Chrysalis Radio’s Galaxy 101 and merging it with Vibe FM (see Competition Commission Blocks GWR’s Acquisition Of Galaxy 101).

GMG is a relatively small player in the radio market and this could allow it to sidestep any major competition concerns.

Speaking at Emap’s recent digital radio seminar, GMG’s managing director, John Myers, announced that the company is planning to extend its Jazz FM brand with the launch of a Jazz FM television channel later this year.

Guardian Media Group: 020 7278 2332 www.gmgplc.co.uk

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